Berkeley Resources (BKY)

Spain-focused uranium explorer
Berkeley Resources
is languishing at about a fifth of its 12-month high of $1.93 in November as it labours under the fallout from the Fukushima nuclear disaster and hiccups at its Salamanca project. Germany’s decision to close its nuclear reactors by 2022 and Italy’s vote to ban nuclear power have weighed on uranium interests in Europe, despite other states continuing their nuclear programs. The mooted bid by Russia’s Severstal last November at $2 per share seems a distant memory, and Berkeley’s shares have sunk 78 per cent this year to less than 40¢. Berkeley’s plans to set up a new company with local partner Enusa to oversee the Salamanca project have run into trouble, with Enusa expressing doubts about aspects of the feasibility study for the $US150 million venture. Berkeley is taking legal advice but the outlook is unclear, and the drop in uranium prices is contributing to the uncertainty.